North Sea oil and gas firm Petrofac files for administration
Petrofac, an energy services company, has applied for bankruptcy. The company, which employs over 2,000 workers in Scotland, has announced that its North Sea operation will continue to operate as normal. Petrofac said in a tweet that it had applied to appoint administrators for its holding company, but that alternate restructuring options were being investigated. Administrators would continue to
the company said.preserve value, operational capability, and continuing delivery,
The decision came after TenneTterminated, the Dutch grid operator, scuppering a proposed financial restructuring, halted a planned financial restructuring. Further details regarding the administration process will be published in due course, according to the firm, which has UK offices in Aberdeen, London, Woking, and Great Yarmouth.
Petrofac, a Texas-based company, designs and builds facilities for oil, gas, and renewables projects, as well as providing engineering, project management, and logistical assistance. It has been involved in the operation of North Sea oil platforms for companies such as BP and Shell. At its peak in 2012, the company was worth around £6 billion, but it has since fallen in recent years as a result of a Serious Fraud Office probe and a string of profit warnings. When Petrofac's shares were suspended in May, it was worth about £20 million. Delays in contract payments and rising operating costs were cited by the company.
'Worrying time'
The Aberdeen and Grampian Chamber of Commerce said it was deeply concerned
by the news, which it said came at a
Thousands of skilled jobs across the region depend on companies like Petrofac,already troubling moment for the North Sea supply chain.
While many of Petrofac's challenges predate the new administration, this is yet another stark reminder that the UK government must urgently act to restore confidence and stability in the energy market.said Chie executive Russell Borthwick, which is at the forefront of both our oil and gas and energy transition industries.
long-standing issuesThe UK Department of Energy Security and Net Zero's spokesperson said that the UK arm of Petrofac is operating as normal, as an in-demand market with a highly trained workforce and many lucrative contracts. The administration process, they said, was a result of
The government will continue to work with the UK company as it focuses on the company's long-term outlook," the spokesperson said.in the company's global operations, according to the company.
